Thinking about expanding places you into an aggressive mindset. It enables all the nervous energy to be transferred into the activity of making sales, creating new strategies, hiring, and etc. When this excitement begins, momentum builds up, and sales begin.
Cutting back equals contraction
When folks establish a budget, it should be used as a guide. However, when you seek to "cut back", the energy level declines, thus the built up momentum slows down. It becomes a downward spiral. It also places you in a reactive mode, instead of being in a proactive mode.
It is your attitude and energy
While having a budget is vital and important, it should act as a baseline or a guide. If your business is struggling, the action should be to focused expanding. This builds positive energy, and a feeling of higher expectations. This, in turn, creates momentum, as momentum is a vital force in sales, or growing an enterprise.
It is easy to contract, think small or act in fear. It takes guts to bite the bullet, take the risk and press forward in the most dire circumstances. Consider this: if the economy is shrinking, that means your competition is being eliminated. Take that opportunity to capture more space and dominate your market.